Thread on Investing Insights and Learning from @safiranand

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Opportunity cost

β€œIn economics, one of the first lessons He learned was that capital is limited and has alternative uses, including satisfaction of consumption. You can do your best to find a good use for its growth.
As long as the search for yields and risk minimization is in balance, you can do well,”
βž” Compounding

β€œThe larger opportunity gets insured with time, and even if there are temporary setbacks to numbers or margins or the like, you can still compound,
βž” The scalability element is more attractive both in terms of upward curves in the bottom line as well as the top line. In many instances, even a single catalyst like a huge order or Capex can change the fortune of such a company,
βž” Things to watch before Investing

The first thing Onc have to look at is the opportunity size of the business, followed by the qualification or temperament of the management.
βž” Valuation

β€œMore than price-to-earnings (P/E) ratio, One should look at the market capitalization to potential.
βž” Lessons

One of the core areas to focus on is to examine what went right and why, and what went wrong and why. Sometimes, our returns maybe just a function of a market tide and one should not read too much talent in it. Similarly, there are costs of omission and commission,
βž” His Journey

Safir Anand entered the market as an observer (student) in his college days. Then, with limited pocket money, he started picking odd stocks, and then as a momentum investor, he got swayed by the IT boom and bought with the tide to eventually lost money.
More serious investing started around 2005 with his own savings. But the year 2008 was quite unkind to him as was the case with most investors, but he says it also thought him immense lessons on greed and fear.
Bonus Quote

The stock market is a great teacher as long as you respect it.

- @safiranand
Full Credit : bit.ly/2TySPog

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Rule of 72 (Double Your Money)
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Rule of 144 (Quadruple)
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4% Withdrawal Rule
100 - Minus Age Rule
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